Although medical devices and other healthcare supplies were exempt from tariff lists in past years, recent changes to the United States trade policy with Canada, China, and Mexico will increase tariffs on imported goods, including medical devices. This shift is expected to affect costs, sourcing, and regulatory timelines for medical device manufacturers, with a measurable tariff impact on remote patient monitoring (RPM) medical devices.
This article explores the layers of uncertainty and the impact that increased tariffs are expected to have on remote patient monitoring services. It outlines how increased tariffs affect device costs, timelines, operations, regulatory processes, and supply chain strategy for the following stakeholders:
- Device manufacturers face strained hardware budgets and rising component costs..
- RPM care companies with limited financial buffers are at risk of increased prices, delayed device shipments, and reduced competitiveness in the market.
- Hospitals and health systems relying on RPM technologies may encounter higher procurement costs and potential delays in device availability.
Tariff Impact on Remote Patient Monitoring Costs and Supply Chain
The tariff impact on remote patient monitoring is most evident in the increased costs of hardware components. Many RPM devices and wearables rely on imported sensors, semiconductors, batteries, and wireless communication modules primarily sourced from China and Southeast Asia. As the U.S. imposes tariffs on these imports, the effects may be felt throughout the supply chain in the following areas.
- Increased hardware costs: Tariffs raise the prices of imported components, leading to higher production costs for RPM devices.
- Supply chain disruptions: Freight surcharges and port delays may cause slowdowns in the delivery of much-needed components, which can affect manufacturing timelines.
- Contract renegotiations: Long-term supplier agreements may require revisiting to account for the new tariff-induced cost structures.
Innovation, Research, and Development Concerns
With the financial strain from increased tariffs, companies may have to reallocate research and development budgets to manage the rising costs of components. Development timelines could be longer, while funding that was earmarked for expanded capabilities, such as new products, AI features, and software improvements, may instead be redirected toward covering increased operational costs.
Smaller companies and startups with limited runway may feel this shift most acutely. Some companies may find the need to postpone product launches altogether due to the added financial pressure.
Such resource reallocation can slow the medical device sector’s ability to meet growing demand for smarter, integrated RPM solutions. This comes at a time when healthcare systems are most in need of smart technology solutions for patient engagement, healthier outcomes, and to lower healthcare costs.
Compliance and Regulatory Concerns
Sourcing new suppliers or manufacturing locations in response to tariff pressures may trigger regulatory hurdles and extended approval timelines for RPM device companies. This is because updated components often require amendments to FDA submissions, additional testing, or revalidation. The processes can extend launch schedules by months.
Increased scrutiny from regulatory bodies may also be a cause for concern. Devices that alter their supply chains or manufacturing locations could face higher audit risk if the changes affect performance, safety, or compliance with FDA standards.
Tariff Impact on Medical Devices: Advocating for Tariff Exemptions
Healthcare organizations are actively petitioning the U.S. administration to exempt essential medical products from recent tariff increases, citing concerns over patient care and supply chain stability. Below are a few examples of organizations that have petitioned the administration.
The American Hospital Association (AHA) has formally requested that the administration grant exceptions to current and proposed tariffs on medical devices and pharmaceuticals. The AHA emphasizes that the increase in tariffs could jeopardize the availability of vital medications and essential healthcare devices, particularly those already in short supply or predominantly supplied by Canada, China, and Mexico.
Similarly, the Health Industry Distributors Association (HIDA) expressed concerns that the tariffs may weaken the healthcare supply chain. HIDA urged consideration of tariff exemptions and exclusions for critical medical products, warning that increased costs and potential supply disruptions could pose national security risks and disproportionately impact providers operating on tight margins, such as rural hospitals and long-term care facilities.
Furthermore, AdvaMed, the Medtech Association, and nine other organizations have called for tariff exemptions for medical and dental supplies, equipment, and devices. They position that the tariffs threaten to disrupt the supply chain and raise costs for critical items, thus placing additional financial pressure on providers, hospitals, health systems, and rural and medically underserved areas.
Understanding the Tariff Impact on Remote Patient Monitoring
In response to the tariff impact on remote patient monitoring, some companies are exploring domestic medical supply manufacturing options. However, setting up domestic production facilities requires significant investment, and existing facilities may not be equipped to handle the requirements of RPM device production. Additionally, the availability of skilled labor for manufacturing RPM devices domestically is limited.
Despite these challenges, domestic manufacturing does offer the potential for greater supply chain resilience and control. To address challenges posed by the tariff impact on remote patient monitoring, companies can implement strategies to build more resilient and adaptable operations in the face of ongoing trade uncertainties.
Tenovi’s Supply Chain: Built for a Shifting Market
While much of the RPM industry scrambles to find stability, Tenovi is in a unique position. Unlike many RPM companies reliant on a single supplier or region, Tenovi has built a broad, resilient supply chain with over 30 manufacturing partners across multiple countries outside of China.
This diversified strategy reduces exposure to tariffs, supply bottlenecks, and sudden price increases. It allows us to maintain better pricing stability and reliable device availability even as the broader market faces rising costs and long delays.
Tenovi is leveraging that strength to support healthcare organizations in delivering cellular-connected RPM and RTM devices so they can stay focused on patient care, not chasing backorders or managing unexpected expenses.
Want to learn how a stronger supply chain can help your team navigate the complexities of today’s trade dynamics? Schedule a meeting with a Tenovi expert for more on how we are helping health teams stay resilient.
